MIX Workshop Micol Pistelli and Michael W. Krell S PTF, 06/05/2013

1. MIXWorkshopMicol Pistelli and Michael W. Krell SPTF, 06/05/2013

2. Agenda

3. SP program in a nutshell

4. MIX SP Program Operations • About 1,000 MFIs reporting SP data • Strengthened partnerships with local networks and created new partnerships through MFC Start-Up Fund WORK DONE SINCE LAST SPTF MEETING… RELEVANT DATA CREDIBLE ACTIONABLE • Enhanced social performance desk review methodology with feedback from data consumers • Developed new tools for filtering and analyzing MFI social performance data • Published new research papers on field staff compensation and governance and country analyses

5. The SP data collection process

6. SP Profile Data Reporting Trends .

7. Market Coverage* of SP Reporters (FY11) *Market coverage = % of all FY11 active borrowers on MIX Market served by MFIs that have reported SP profile data (total FY11 active borrowers on MM = 94M)

8. Current Process for Data Reporting There are 2 avenues for reporting social performance data to MIX: 1. A combined SP/FP tool (for annual data on SP outreach): http://www.mixmarket.org/contribute-data 2. An online platform: MFIs have a username and password to access the platform and update their social performance data at any time (for qualitative SP information) If the MFI reports tracking poverty data: MIX sends a separate online poverty data questionnaire to report client poverty measurements Note: MFIs that are unable to submit their information online can still submit their data by mailing it to MIX.

9. The Future of MIX Data Reporting Today Tomorrow Cerise Network Cerise DFI Network MIV DFI MIV MIX MIV MFI DFI MFI Lender DFI MIV Rating Agency Rating Agency Lender MIX

10. Improving the quality of SP data

11. The Quest for Social Performance Data Quality Unlike the majority of financial data on MIX Market, social performance data is not audited. MFI MIX • Data verification by a third party builds trust in the level of accuracy and reliability of SP data • If data is documented, it can be used for analysis and investment decisions Desk Review MIX

12. What Does the SP Desk Review Methodology Verify? MIX verifies: • The existence of policies, strategies, procedures, products, and services at an MFI corresponding with the indicators reported. MIX does not verify: X The suitability of products and services to clients’ needs, the appropriate implementation of policies, or the accuracy of data generated by an MFI’s surveys/MIS reports.

13. The SP Desk Review Process

14. Using the MIX SP Desk Review Compendium • Every MFI that has reported SP data to MIX should review this Compendium and submit the supporting documents needed to verify their data to MIX’s analysts or MIX’s partners. MFI X Staff Manual Page 5 RECRUITMENT POLICY / PROHIBITION OF ALL KINDS OF DISCRIMINATION: No discrimination is permitted in the work place made on the basis of race, color, sex, religion, age, family status, political opinion, national extraction or social origin, language or union membership which has the effect of nullifying or impairing equality of opportunity or treatment in employment or occupation. Any distinction, exclusion or preference in respect of particular job bases on the inherent requirements therefore shall not be deemed to be discrimination. ……..

15. Desk Review via External Validation:Social Ratings and CERISE SPI • One way that MIX reviews MFIs’ social performance data is by comparing them with the information contained in social ratings. • The social rating should be not be dated more than two years prior to the year that the MFI reported SP data to MIX. MIX accepts social ratings from the following agencies: Planet Rating, M-CRIL, MicrofinanzaRating and Microrate. • MIX also collects the latest version of the CERISE SPI (social audit), which is compatible with MIX’s qualitative (“profile”) SP indicators. • MFIs with an externally validated CERISE SPI do not need to report SP profile indicators to MIX Market — these data will be imported directly from the SPI. (If the MFI has already reported this information to MIX, MIX uses CERISE SPI as an additional way to verify the information the MFI reported.)

16. MFIs Without External Validation MFIs whose indicators are not validated through a CERISE SPI or a social rating are required to submit additional supporting documentation in order to fulfill desk review requirements. For a complete list of necessary documents, see the Compendium. In the case of qualitative (“profile”) data, if an MFI has already submitted a supporting document to MIX in the past, it does not need to resubmit the same document. Data reported on an annual basis (e.g. client poverty measurements) must be desk validated via separate documents for each year of data submission. • Program Administration Manual • MFI X • October 2011 • PROHIBITED INVESTMENT ACTIVITIES LIST • Projects that involve conversion or degradation of critical forest areas or related natural habitats. • Projects involving commercial manufacturing of ozone-depleting substances or the production or use of organic pollutants. • Extraction or infrastructure projects in or impacting protected areas. • …………

17. MIX’s SP Data Partners

18. S.T.A.R. MFIs

19. A Clearinghouse for Data and Document Sharing Data Quality: UNKNOWN • Data Quality: DOCUMENTED • Existence of policies and • procedures • Data Quality: DOCUMENTED and STANDARDIZED • Existence of policies and procedures • REDUCED MFI reporting burden

20. Joining Forces to Improve SP Data Quality Assessing both the existence and the application of SP indicators Verify the application of policies and the procedures in place, sample client level data and provide an in-depth analysis of the state of SPM SMART and Grameen PPI certify the adoption of CPPs and the correct use of PPI; CERISE verifies the application of policies and the procedures in place, and provides a score on the quality of the MFI’s SPM Collects and reviews SP documents to corroborate the existence of policies and the procedures in place in MFI operations

21. Aligning SP indicators to the USSPM

22. Current Suite of MIX SP Indicators

23. The USSPM and MIX SP Indicators 5 MIX indicators UNDER CONSTRUCTION ! 5 MIX indicators 2 MIX indicators Not included in USSPM: 1 MIX indicator on environmental policies 9 MIX indicators 4 MIX indicators

24. The integration of new SP indicators • MIX will be collecting ALL the SP indicators identified by the SPTF with direct alignment to Cerise’s SPI tool for data upload • In the absence of externally validated SPI, MFIs’ policy documents will be reviewed by MIX analysts and local partner

25. Next Steps for New USSPM-aligned SP indicators • Summer: an additional public comment period for the review of the indicators over the next few months • 2014: MIX will pilot the collection of its new set of indicators with volunteer MFIs • The pilot will give us insight on the willingness and ability of MFIs to report on the new indicators and allow us to examine the different practices in place among MFIs; this, in turn, will guide the creation of user guides to help MFIs apply the USSPM • By early 2014, MIX will organize a series of webinars in collaboration with the SPTF detailing the process of reporting on the new SP indicators to MIX

26. Financial Inclusion Maps

27. Aggregate and Link Data for a More Integrated and Granular Understanding of Markets • Example: Financial inclusion in Rajasthan, India • (33 districts) • Financial services • MFIs, BCs, SHGs • Institutions • Access points • Loan portfolios • Contextual information • Population (Density, urban/rural) • Income (per capita, poverty , HDI) • Infrastructure (mobile, phone, TV, electr., UID enrollment, literacy)

28. Platform for Aggregation, Analysis, and Visualization of Financial Inclusion Data Aggregation & visualization 1.0 completed Sub-Saharan Africa Nigeria s South Africa s Kenya s Rwanda s India s Peru s Guatemala s Bolivia Indian state of Rajasthan Projects in process Global hub for financial inclusion data Maps of: Uganda s Zambia s Afghanistan s Cote d’Ivoire s Senegal s Tanzania Projects planned Maps of: Philippines s Myanmar s 5 other African countries Agriculture-related datasets With support from: The MasterCard Foundation s Department for International Development-UK (DFID) Citi Foundation s Multilateral Investment Fund-IDB s IFAD s McGraw Hill Financials UNCDF

29. Next steps for MIX’s SP program

30. Next Steps in SP Operations BY THE END OF 2013… • Pilot new USSPM-aligned indicators in the Fall RELEVANT DATA CREDIBLE ACTIONABLE • Launch a benchmarking tool for SP data analysis and publish 5 research pieces • Train MFIs and networks on SP document desk review and collect documents through the end of the year

31. SP data analysis

32. Ongoing Analysis • How strong are correlations between the various SP indicators collected by MIX? • Is there a correlation between different funding sources and ability to track social outcomes? • What correlations exist between policies related to social responsibility to staff, client retention, and financial performance? • What is the state of practice in poverty data collection and reporting? • What correlations exist among client protection principles, client retention, portfolio quality, and levels of client indebtedness in LAC?

33. Which Development Goals Are MFIs Pursuing?

34. Do MFIs Track Outcomes Related to their Goals? *Proxy outcome indicator (women’s empowerment services outreach)

35. Focus on Poverty Data LAC PPI Data (FY08-FY11) (restricted to countries with more than one MFI reporting) *Source: World Bank (most recent year available) • 161 MFIs have reported at least one year of client poverty data and 78 have reported FY11 poverty data • The most common measurement methods used for reporting are the PPI, PCH income, and custom poverty scorecards • Only 6 MFIs were able to report how many of their clients moved out of poverty in FY11

36. A Self-assessment Tool for MFIs on MIX Market! In the near future MFIs will be able to use the SP data reported to MIX to benchmark themselves and learn about how to improve their SPM practices…. MFIs report data to MIX MIX redirects MFIs to existing resources on the SPTF website to improve SPM practices in each area of the USSPM MIX benchmarks data vis-à-vis peers and USSPM to identify areas of strength and weakness in each SP area

37. Video on how to analyze social performance data on MIX Market http://www.themix.org/social-performance/training-videos

39. MIX Global and Project Partners MIX partners with a dedicated group of industry leaders:

40. Microfinance Information Exchange Headquarters: 1901 Pennsylvania Ave., NW, Suite 307 Washington, D.C. 20006 USA Visit us on the Web: www.themix.orgwww.mixmarket.org Contact us: info@themix.org Interested in learning more about MIX? Sign upto receive our free e-mail newsletters! Find us on Facebook Follow us on Twitter:@mix_market Regional Offices: Baku, Azerbaijan 44 J. Jabbarlist. Caspian Plaza I, 5th Floor, Baku, Azerbaijan Lima, Peru Jirón León Velarde 333 Lince, Lima 14, Perú Dakar, Senegal Villa n°4, rue YF-632, citéAblayeThiam Ouest-Foire, Dakar-Sénégal Hyderabad, India Road #12, Landmark Building, 5th Floor, Banjara Hills, Hyderabad 500034, India